For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Arista Networks (ANET - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of ANET and the rest of the Computer and Technology group's stocks.
Arista Networks is a member of our Computer and Technology group, which includes 660 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. ANET is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ANET's full-year earnings has moved 0.83% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, ANET has returned 5.68% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 1.52% on a year-to-date basis. This means that Arista Networks is performing better than its sector in terms of year-to-date returns.
To break things down more, ANET belongs to the Communication - Components industry, a group that includes 24 individual companies and currently sits at #54 in the Zacks Industry Rank. On average, stocks in this group have gained 3.09% this year, meaning that ANET is performing better in terms of year-to-date returns.
Investors with an interest in Computer and Technology stocks should continue to track ANET. The stock will be looking to continue its solid performance.